Gold gains Rs110; silver recovers Rs450 after 3-day fall

Gold prices today rose by Rs110 to Rs22,780 per ten grams on buying by local parties amid the marriage season and firming overseas trend.

Sliver snapped its three-day losing streak, gaining Rs450 to trade at Rs54,450 per kg in the bullion market here on buying by stockists triggered by firming global trend.

Marketmen said that prices of the precious metals rose in line with that in global markets.

Gold strengthened in the overseas markets on speculation the US Federal Reserve will keep key rates low to stimulate the American economy which boosted the appeal of the precious metal as an alternative to the slumping dollar and equities.

Gold in global markets, which normally set price trend here, rose by $9.70 to $1,542.40 an ounce and silver by 0.39% to $36.29 an ounce.

Additionally, some buying for the ongoing marriage season also supported the uptrend to some extent.

The gold of 99.9 and 99.5% purity bounced back by Rs110 to Rs22,780 and Rs22,660 per ten grams respectively. the metal had lost Rs150 in the previous session.

Sovereign, continued to be asked around previous level of Rs18,700 per piece of eight gram in limited deals.

Silver ready, which had plunged by Rs4,300 in the last three sessions, recovered by Rs450 to Rs54,450 per kg and weekly-based delivery by Rs740 to Rs54,390 per kg.

However, silver coins tumbled by Rs8,000 to Rs59,000 for buying and Rs60,000 for selling of 100 pieces on resistance at higher levels.